A dynamic general equilibrium model that generalises Roemer's [23] economy with a global capital market is analysed. An axiomatic analysis of the concept of unequal exchange (UE) between countries is developed at general dynamic equilibria. The class of UE definitions that satisfy three fundamental properties - including a correspondence between wealth, class and UE exploitation status - is completely characterised. It is shown that this class is nonempty and a definition of UE exploitation between countries is proposed, which is theoretically robust and firmly anchored to empirically observable data. The full class and UE exploitation structure of the international economy is derived in equilibrium.

Institute of Economic Research, Hitotsubashi UniversitySchool of Economics and Finance, Queen Mary University of LondonDepartment of Economics, University of Massachusetts AmherstInstitute of Economic Research, Hitotsubashi University一橋大学経済研究所